Payroll Increase Beats Expectation Due to Tax Cuts

Here’s what the Democrats have been labeling the “tax scam” at work. And making a difference for hundreds of thousands of Americans.

Private payrolls in the U.S. increased by more than expected last month as companies get a boost from lower corporate taxes, ADP and Moody’s Analytics said Wednesday.

Jobs in the U.S. increased by 219,000 in July, while economists polled by Reuters expected a gain of 185,000. July’s job gains were the best since February, when 241,000 jobs were added. Jobs growth for the previous month was also revised up to 181,000 from 177,000.

Medium-sized businesses, which employ 50 to 499 people, added the most payrolls in July as they created 119,000. Larger businesses, meanwhile, expanded their payrolls by 48,000. Small businesses, which employ one to 49 people, say payrolls grow by 52,000.